Construction Lawyer

Augusta GA

Contract Disputes

What is a Construction Dispute?

A construction dispute is any conflict or disagreement that arises during the planning, execution, or completion of a construction project. These conflicts can involve stakeholders such as contractors, subcontractors, suppliers, developers, architects, and property owners. Common issues leading to disputes include contractual obligations, project delays, construction defects, payment disagreements, and disputes over the scope of work.

Most construction disputes stem from contract-related claims. When disagreements arise between the client and contractor regarding the scope of work, the contract terms are generally expected to govern. However, legal complications often occur when the contract language is ambiguous or when the project evolves in ways not clearly addressed in the original agreement.

What Should a Contract Include?

A construction contract should clearly outline the work to be performed, an estimated timeline for completion, and the names of any subcontractors and material suppliers involved. Like other contracts, its purpose is to minimize surprises and misunderstandings during the project. If changes arise, a secondary agreement known as a change order is added. This document details the nature of the change and the reason behind it.

However, not all contractors use well-drafted contracts. Many rely on industry-standard forms available online through construction trade organizations. These templates often include boilerplate provisions that reduce the risk of disputes, such as warnings about mechanic’s liens and disclaimers for product defect claims.

In cases where proper contracts are not in place, homeowners may be left vulnerable. Disputes with contractors or permitting agencies can quickly escalate, often requiring the assistance of a construction law attorney to resolve.

What are the Most Common Construction Disputes?

Payment Disputes – These arise when parties disagree over the amount owed, the timing of payments, or whether the quality of work justifies payment release.

Delay and Disruption Claims – Project delays or interruptions can trigger disputes over who is responsible, whether time extensions are warranted, and whether additional costs should be compensated.

Construction Defects – Conflicts occur when workmanship or materials are alleged to be defective, impacting the project’s safety, functionality, or appearance.

Contract Interpretation – Disagreements often stem from differing interpretations of contract terms, conditions, or scope of work, leading to uncertainty over each party’s rights and obligations.

Insurance and Indemnity Issues – Disputes may also involve questions of insurance coverage, responsibility for accidents or damages, and the enforcement of indemnification clauses among stakeholders.